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If there are 500 daycare slots and 2,000 people that need daycare then only the wealthiest 25% are going to be able to afford it. If this gets expanded to 1,500
by manfredo 8y ago
If there are 500 daycare slots and 2,000 people that need daycare then only the wealthiest 25% are going to be able to afford it. If this gets expanded to 1,500 slots then 75% can get daycare. That's how scarcity drives up supply. If the demand for something exceeds it's availability then its price rises.
Are there operational costs that make operating a daycare at lower than $X per child per day unprofitable? Maybe. If it's rent then the discussion shifts to the supply of real estate. If it's wages then it's about the accessibility of labor.